Alibaba Invests In AdChina While Investors Check Out BABA BIDU

Alibaba (NYSE:BABA) said Wednesday that it’s taken a majority stake in AdChina, the company that runs China’s largest independent digital ad platform, to expand its online and mobile marketing capabilities in the Chinese market.

Alibaba shares fell 2.4% to 98.32 in afternoon trading on the stock market today, at its lowest levels since the end of October. Alibaba’s stock blew out of an IPO base in late October, soaring to 120 on Nov. 13. Since then the stock has pulled back, erasing all of those breakout gains. It found support at its 50-day moving average several times in December, but at the end of last year broke below that key level.

The exact size of Alibaba’s strategic stake in AdChina wasn’t disclosed.

Alibaba says AdChina will work closely with Alimama, the Alibaba Group’s online marketing technology platform, and Aliyun, its cloud computing unit, to develop a data-driven digital marketing platform that offers online marketing services and data marketing products to businesses, online media clients and third-party service providers.

The Chinese e-commerce giant says its aim is to help build a world-class marketing and data-driven platform that will aid companies and merchants who sell on Alibaba websites.

“The rapid rise and development of the e-commerce industry in China has made the relationship between e-commerce and marketing ever-more linked. AdChina’s data marketing platform and Alimama’s existing online marketing business are very complementary,” said Hua Wang, General Manager of Alimama.

Shanghai-based AdChina provides an Internet ad platform, ad software and various types of online ad formats for clients. It was originally founded in 2007 in Silicon Valley.

Alibaba’s investment is expected to allow AdChina to bolster its existing businesses. The data sharing between both companies will also help AdChina strengthen its multi-screen marketing capabilities.

Separately, Alibaba-backed Chinese ride-hailing mobile app Kuaidi reportedly is raising more than $500 million. Alibaba archrival Tencent Holdings (OTCPK:TCEHY) has invested in another ride-sharing app, Didi. Baidu (NASDAQ:BIDU) last month made a big investment in America’s Uber.

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Alibaba Invests In AdChina While Investors Check Out

Alibaba Invests In AdChina While Investors Check Out

Alibaba said Wednesday that it’s taken a majority stake in AdChina, the company that runs China’s largest independent digital ad platform, to expand its online and mobile marketing capabilities in the Chinese market. stock market today , at its lowest levels since the end of October. Alibaba says AdChina will work closely with Alimama, the Alibaba Group’s online marketing technology platform, and Aliyun, its cloud computing unit, to develop a data-driven digital marketing platform that offers online marketing services and data marketing products to businesses, online media clients and third-party service providers.

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2015-01-14T14:15:00

Alibaba Group Holdings stock,Alibaba strategic stake in AdChina,Alibaba stock falls in 2015,China Internet advertising marketing,Chinese ecommerce industry,Alibaba Alimama unit,Alibaba Aliyun cloud computing unit,AdChina businesses

Alibaba Invests In AdChina While Investors Check Out BABA BIDU